Commonwealth Bank and Goldman Sachs today announce a strategic alliance that will create a preeminent capability in equities by combining leading equity capital markets and investment research expertise with Australia’s largest online retail share trading platform.
The alliance will enable CommSec and Commonwealth Private Bank customers to access Goldman Sachs’ pipeline of equity offerings, including IPOs and will also see ongoing collaboration between Commonwealth Bank and Goldman Sachs in servicing the equity capital markets needs of Commonwealth Bank’s corporate customers. Goldman Sachs will also provide eligible Commonwealth Bank customers with access to the full suite of Goldman Sachs’ Australian and New Zealand investment research, as well as its global macroeconomic and strategic research.
Adam Bennett, Commonwealth Bank, Group Executive for Business and Private Banking said, “This alliance further enhances the products and services we deliver to our customers, providing them with high-quality independent perspectives as they invest in equity markets.
“It provides our customers access to Goldman Sachs’ suite of highly rated Australian and New Zealand equity research as well as global macroeconomic and strategic research. In addition, many of our CommSec advisors, Commonwealth Private bankers and wealth managers and our corporate bankers will have the added benefit of accessing research on over 3,100 stocks across five regions globally. This will provide another opportunity to deliver better outcomes for our customers,” Mr Bennett said.
Simon Rothery, Chief Executive Officer of Goldman Sachs in Australia and New Zealand said, “We are delighted to be forming an alliance with the Commonwealth Bank, with exclusive access to CommSec, Australia’s largest online retail share trading platform, which will greatly enhance our combined abilities to execute a range of equity financing solutions for all of our clients.”
Commonwealth Bank’s proprietary Institutional Equities team that forms part of the Group’s Institutional Banking & Markets business will wind down from 16 December 2015. Certain roles will be affected by this decision and the Group is working through the impact on its people, including exploring opportunities for redeployment both within Commonwealth Bank and Goldman Sachs.
Kelly Bayer Rosmarin, Commonwealth Bank, Group Executive for Institutional Banking and Markets said, "Our Institutional Equities business has high calibre people, who have led or participated in nearly $60 billion in capital raisings and government privatisations in Australia. Making the decision to discontinue this team has been difficult. Our clients are increasingly operating internationally, and while we are able to offer global solutions in many parts of our business, we have not been able to provide access to global equity markets.
“Meeting this need with a partner of Goldman Sachs' global capability and reputation is an exceptional outcome for our clients. We are very enthusiastic about the benefits that two leading firms working together can bring to our clients.
“We are also continuing to invest in our leading debt and hybrid securities capital markets offering and will continue to deliver our award winning global markets research, which includes our economics, fixed income and foreign exchange research, to complement this offering,” Ms Bayer Rosmarin said.
About CBA
Commonwealth Bank is Australia’s leading provider of integrated financial services, including retail, premium, business and institutional banking, funds management, superannuation, insurance, investment and share-broking products and services.
CommSec comprises Commonwealth Bank's online trading platforms servicing retail and wholesale customers, as well as the Bank's investment lending proposition for CommSec customers and third parties, such as financial planning groups. Branded businesses include CommSec and CommSec Adviser Services.
Commonwealth Bank’s Institutional Banking and Markets (IB&M) business has core capabilities across transactional and working capital banking, debt financing solutions, financial markets and risk management products. The business is responsible for developing and providing products to a broad spectrum of business clients from small business owners through to large corporates and government institutions.
About Goldman Sachs Group, Inc.
The Goldman Sachs Group, Inc. is a leading global financial institution that provides a wide range of financial services to a substantial and diversified client base that includes corporations, institutions, governments and high-net-worth individuals. Founded in 1869, the firm is headquartered in New York and maintains offices in all major financial centers around the world.